B-121198, NOV. 18, 1955

B-121198, NOV. 18, 1955

TO BERMUDA DEVELOPMENT COMPANY, LTD.:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF AUGUST 24, 1955, ACKNOWLEDGED SEPTEMBER 15, REQUESTING FURTHER CONSIDERATION OF OUR DECISION OF AUGUST 1, 1955, WHICH SUSTAINED OUR SETTLEMENT DATED FEBRUARY 14, 1955, WHEREBY $3,789.50 OF YOUR CLAIM THEREIN REFERRED TO WAS ALLOWED AND THE BALANCE DISALLOWED.

AS STATED IN THE DECISION OF AUGUST 1, YOUR CLAIM WAS ALLOWED FOR THE NUMBER OF GUEST DAYS FOR WHICH ROOM RESERVATIONS WERE MADE, LESS THE RESERVATIONS FOR JULY 5 THROUGH 7, WHICH FELL WITHIN THE PERIOD JULY 1 TO 7. THAT PERIOD WAS EXCLUDED BY YOU FROM YOUR CLAIM FOR REASONS STATED IN THE DECISION.

YOUR LETTER INDICATES THAT YOU ARE UNDER THE IMPRESSION THAT THE BASIS OF YOUR CLAIM IS NOT UNDERSTOOD HERE. IN THIS CONNECTION, YOU STATE THAT THE AMOUNT OF COMPENSATION CLAIMED BY YOU IS THE DIFFERENCE BETWEEN THE REVENUE WHICH WOULD HAVE RESULTED FROM PROJECTED BOOKINGS AND THE LESSER REVENUE RECEIVED FROM THE REDUCED NUMBER OF GUESTS, WHO, AFTER PREVIOUS REJECTION, WERE REINSTATED IN THE BOOKING LIST. IN SUPPORT OF YOUR CONTENTION THAT THE CLAIM SHOULD BE ALLOWED ON THAT BASIS YOU URGE THAT IT WAS IMPOSSIBLE FOR YOU TO HOUSE THE CONFERENCE DELEGATIONS AND OTHER PERSONS CONNECTED WITH THE THREE POWER TALKS WITHOUT CANCELING AND DISHONORING PREVIOUSLY MADE BOOKINGS, BUT THAT YOU FELT A DISTINCT OBLIGATION TO PROVIDE THE ACCOMMODATIONS FOR THOSE CONNECTED WITH THE TALKS AND, THEREFORE, DID SO.

IN TRANSMITTING THE CLAIM HERE FOR SETTLEMENT, THE DEPARTMENT OF STATE RECOMMENDED ALLOWANCE ON THE BASIS OF THE NUMBER OF ROOM RESERVATIONS, LESS THE PERIOD EXCLUDED BY YOU AND LESS THE AMOUNT ALREADY PAID. INDICATED ABOVE, THE ALLOWANCE WHICH WAS MADE WAS ON THAT BASIS. HOWEVER, UPON RECEIPT OF YOUR LETTER OF AUGUST 24, THE DEPARTMENT WAS, AS STATED IN OUR LETTER OF SEPTEMBER 15, REQUESTED TO FURNISH A SUPPLEMENTAL REPORT IN THE MATTER. A COPY OF YOUR LETTER OF AUGUST 4 WAS FURNISHED THE DEPARTMENT WITH OUR REQUEST FOR THE REPORT. THE REPORT HAS NOW BEEN RECEIVED, IN WHICH, AFTER DISCUSSING TO SOME EXTENT THE CONTENTS OF YOUR LETTER, THE DEPARTMENT INDICATES THAT IT HAS NO FURTHER RECOMMENDATION TO MAKE IN THE CASE.

THIS OFFICE UNDERSTOOD AT THE TIME ACTION WAS TAKEN ON YOUR CLAIM THE BASIS ON WHICH YOU COMPUTED AND PRESENTED IT. ALSO, THE RECORD INDICATES THAT THE DEPARTMENT OF STATE SO UNDERSTOOD IT AT THE TIME IT WAS UNDER CONSIDERATION THERE, PRIOR TO ITS BEING FORWARDED HERE BY THE DEPARTMENT FOR SETTLEMENT. AS PRESENTED, IT APPEARS TO BE ONE FOR CONSEQUENTIAL DAMAGES FOR THE LOSS OF PROFITS WHICH YOU CONTEND WOULD HAVE ACCRUED TO YOU HAD THE ROOM RESERVATIONS FOR THE TALKS NOT BEEN MADE AND HAD YOUR BUSINESS PROCEEDED WITHOUT PLANS FOR THE CONFERENCE RATHER THAN AS A CLAIM FOR THE PRICE OF THE ROOM RESERVATION. HOWEVER, EVEN IF THE CLAIM AS COMPUTED AND PRESENTED BY YOU SHOULD BE ESTABLISHED AS FACTUALLY CORRECT, WE FIND NO LEGAL BASIS FOR ALLOWING IT ON ANY BASIS OTHER THAN AS SHOWN IN THE ACTION HERETOFORE TAKEN OR IN ANY AMOUNT IN EXCESS OF THE ALLOWANCE HERETOFORE MADE.

ACCORDINGLY, THE DECISION SUSTAINING THE SETTLEMENT ACTION IN THE MATTER MUST BE AND IS AFFIRMED.